US President Donald Trump said on Monday that he has agreed to a trade deal with India and to cutting the tariff to 18% — something that was held up for months, especially since Washington’s 50% tariff shock to India in August.
The President listed out several reasons and made multiple claims on agreeing to the deal in a Truth Social post, even as Modi’s version of their latest conversation was more measured.
Trump in his post listed Modi as “one of my greatest friends and, a Powerful and Respected Leader of his Country”. He said they spoke about “many things”, including trade, “and ending the War with Russia and Ukraine”.
‘No Russian oil’
The primary reason he listed for agreeing to make a deal was that Modi “agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela”.
He added, “This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!”
Another reason he listed is “friendship and respect for Prime Minister Modi”.
Modi ‘made request’
He said Modi made him a request which is why “effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%”.
India is currently facing 50% tariff — 25% as reciprocal and 25% as “penalty” for buying Russian oil. While Trump said the reciprocal tariff is now 18%, it was not expressly clear what happens to the “penal” 25%. Trump’s mention that India “will not buy” Russian oil signals a removal of that 25% too.
Zero tariffs from Indian side?
He claimed Modi told him India “will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO”.
Further he claimed, “The Prime Minister also committed to ‘BUY AMERICAN,’ at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products.”
He listed himself and Prime Minister as “two people that GET THINGS DONE, something that cannot be said for most”.
What Modi said in his X post
PM Narendra Modi later posted on X, “Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement.”
He did not mention anything yet on Trump’s claims that India will buy $500 billion worth of US goods, and that Delhi will cut tariffs for US to zero.
Modi wrote: “When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation.”
He added, “President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace. I look forward to working closely with him to take our partnership to unprecedented heights.”
www.hindustantimes.com
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